Q&As and Ask an Expert

I have a current CCJ against me for a debt.
I have recently inherited half my parents’ house, currently held in a trust until my other parent dies, upon which I will then will inherit the other half.
Question is, would the creditor be able to put some sort of lien against any of this now; i.e. on the part held in trust already, or on the future inheritance?

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Some trusts may state if one of the beneficiaries become insolvent during the trust they lose their entitlement, alternatively it may state the trustees can vary the terms of the trust.

Assuming none of that is correct in your case, it sound like on the death of your other parent you will inherit your half share of the house.

At present the property may still be out of reach of your creditor, unless you are made bankrupt and then your interest may vest in your trustee in bankruptcy, who could force the sale of the property once your other parent dies, to realise your share of the property.

Alternatively, if they don’t bankrupt you and you inherit your half, they may place a charge over the property and ultimately apply to sell the property.

How the law works will also depend on what part of the UK you are in and the property is in, as Scots Law is different.

I would recommend you take legal advice on the trust and also seek to deal with this debt as soon as possible.

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